Q4 earnings: not great but not a shocker

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STOXX 600 up 0.1%

Energy outperforms

Retail and travel & leisure lag

Eyes on U.S. PCE data

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Fourth quarter earnings season is in its early stages but results have been broadly in-line with expectations so far, according to Barclays equity strategists led by Emmanuel Cau.

"Early Q4 results confirm what everyone seemed to have expected, i.e. slowing demand, margins pressure and an uncertain outlook for '23, but are not a shocker either," Barclays says in a note.

Looking forward, Cau's team says the Fed and ECB meetings next week are likely to hold the fate of the recent rally, a rally that has seen the STOXX 600 jump near 7% this month, its biggest January gain since 2015.

"The rebound in equities of the past 3 months or so has been largely built on market expectations of a dovish pivot in monetary policy," Barclays says.

"Falling yields have acted as a tailwind for P/Es, but a lot of (too much?) dovishness seems priced in now, in our view," they say adding that the question next week will be whether the central banks push back on current market pricing.

Money markets are pricing in rate cuts from the Fed this year and from the ECB early in 2024.

"A dovish (but unlikely) tilt would likely be cheered by markets, while a hawkish surprise may lead to short term downside," Barclays writes, adding that the ECB will likely sound more hawkish, "which could add more upward pressure on euro-dollar."

(Samuel Indyk)



European shares are edging up as investors digest a mixed batch of earnings reports, ahead of a slew of central bank meetings next week.

The pan-European STOXX 600 .STOXX is up 0.1%, with losses in retailers .SXRP offseting gains in the energy .SXEP sector.

Shares in the world's second-biggest fashion retailer H&M HMb.ST are down 6% after the company reported a much larger-than-expected dive in September-November operating profit, slammed by soaring costs and weakening consumer confidence.

Shares of LVMH LVMH.PA - Europe's biggest company by market value - opened lower but recovered, rising 0.8%. Some analysts expressed disappointment over the company's margins, which initially took some of the shine off its strong fourth-quarter sales figures.

Investors are refraining from positioning too aggressively ahead of a week packed with central bank meetings, major economic data and a slew of megacap earnings. Markets expect policymakers at the Bank of England and European Central Bank (ECB) to deliver 50-bps rate hikes and for the Federal Reserve to raise rates by just 25 bps.

(Joice Alves)



Chip giant Intel's INTC.O grim earnings report along with mixed U.S data that showed a resilient economy but a labour market that remains tight will likely dominate investors' minds and dictate Friday's trading.

The U.S. chip bellwether expects to lose money in the current quarter as two pillars of its success in the past few years -- the PC and data centre businesses -- face slowing demand.

"We stumbled ... we lost momentum," said Chief Executive Pat Gelsinger.

In contrast, European chipmaker STMicroelectronics STM.PA cited strong demand from automotive and industrial customers on Thursday as it beat earnings and sales targets.

Meanwhile, better-than-estimated U.S. GDP data has provided a fillip to investors for some risk-on rally, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS at a nine-month high and set for its best ever January performance.

The Japanese yen JPY=EBS rose against the dollar after Tokyo's consumer inflation, a leading indicator of nationwide trends, touched a near 42-year high and reinforced market expectations that the Bank of Japan will soon have to step away from its ultra-easy policy.

Before next week's central bank meetings (that's Fed, ECB and BOE on the deck) take all of investors' attention, the focus on Friday will be on the Fed's preferred inflation gauge, the personal consumption expenditures (PCE) data. The core PCE price index is expected to rise 0.3% in December, according to Reuters poll of economists.

Key developments that could influence markets on Friday:

Economic events: Sweden unemployment rate for December, Spain Q4 GDP data and core U.S. PCE data

(Ankur Banerjee)



Futures are pointing to a positive start of the day for European bourses after data highlighting a resilient U.S. economy boosted investor sentiment ahead of next week's slate of central bank policy meetings and corporate earnings.

In Europe, the focus will also be on a mixed batch of earnings results.

European stock futures Eurostoxx 50 futures STXEc1, German DAX futures FDXc1 and FTSE futures FFIc1 are up around 0.1%.

The U.S. economy grew faster than expected in the fourth quarter. But capping the enthusiasm, data also showed that a measure of domestic demand rose at its slowest pace in 2-1/2 years, reflecting the impact of higher borrowing costs. While a separate report showed that labour market remains tight and could lead the Fed to keep interest rates higher for longer.

In terms of corporate news, luxury goods group LVMH's LVMH.PA sales rose 9% in the fourth quarter as shoppers in Europe and the U.S. splurged over the crucial holiday season, helping partly to offset COVID disruptions in China.

H&M HMb.ST, the world's second-biggest fashion retailer, reported a much larger dive than expected in September-November operating profit, slammed by soaring costs and weakening consumer confidence.

(Joice Alves)


Tokyo core CPI rises, highest in almost 42 yearshttps://tmsnrt.rs/3kO41Lb

Intel quarterly revenue falls most in at least two decadeshttps://tmsnrt.rs/3Difby2

EU shares Janhttps://tmsnrt.rs/3HfNhE7


إخلاء المسؤولية: تتيح كيانات XM Group خدمة تنفيذية فقط والدخول إلى منصة تداولنا عبر الإنترنت، مما يسمح للشخص بمشاهدة و/أو استخدام المحتوى المتاح على موقع الويب أو عن طريقه، وهذا المحتوى لا يراد به التغيير أو التوسع عن ذلك. يخضع هذا الدخول والاستخدام دائماً لما يلي: (1) الشروط والأحكام؛ (2) تحذيرات المخاطر؛ (3) إخلاء المسؤولية الكامل. لذلك يُقدم هذا المحتوى على أنه ليس أكثر من معلومات عامة. تحديداً، يرجى الانتباه إلى أن المحتوى المتاح على منصة تداولنا عبر الإنترنت ليس طلباً أو عرضاً لدخول أي معاملات في الأسواق المالية. التداول في أي سوق مالي به مخاطرة عالية برأس مالك.

جميع المواد المنشورة على منصة تداولنا مخصصة للأغراض التعليمية/المعلوماتية فقط ولا تحتوي - ولا ينبغي اعتبار أنها تحتوي - على نصائح أو توصيات مالية أو ضريبية أو تجارية، أو سجلاً لأسعار تداولنا، أو عرضاً أو طلباً لأي معاملة في أي صكوك مالية أو عروض ترويجية مالية لا داعي لها.

أي محتوى تابع للغير بالإضافة إلى المحتوى الذي أعدته XM، مثل الآراء، والأخبار، والأبحاث، والتحليلات والأسعار وغيرها من المعلومات أو روابط مواقع تابعة للغير وواردة في هذا الموقع تُقدم لك "كما هي"، كتعليق عام على السوق ولا تعتبر نصيحة استثمارية. يجب ألا يُفسر أي محتوى على أنه بحث استثماري، وأن تلاحظ وتقبل أن المحتوى غير مُعدٍ وفقاً للمتطلبات القانونية المصممة لتعزيز استقلالية البحث الاستثماري، وبالتالي، فهو بمثابة تواصل تسويقي بموجب القوانين واللوائح ذات الصلة. فضلاً تأكد من أنك قد قرأت وفهمت الإخطار بالبحوث الاستثمارية غير المستقلة والتحذير من مخاطر المعلومات السابقة، والذي يمكنك الاطلاع عليه هنا.

نحن نستخدم ملفات الكوكيز لنمنحك أفضل تجربة على موقعنا. يمكنك قراءة المزيد أو تغيير إعدادات الكوكيز.

تحذير المخاطر: رأس مالك في خطر. المنتجات التي تستخدم الرافعة قد لا تكون مناسبة للجميع. يرجى الاطلاع على تنبيه المخاطر.